6 0/ 100(93 complete)This Test: 100 pts possible to NewBank started its first da

Question

6 0/ 100(93 complete)This Test: 100 pts possible to NewBank started its first day of operations with $165 million in capital. A total of $256 million in checkable deposits is received. The bank makes a S28 million commercial loan and another S28 million in mortgage loans Required reserves are 69% NewBank decides to invest $189 million in 30-day T-bills. The T-bills are currently trading at $4,987 (including commissions) for a $5,060 face value instrument How many T-bills do they purchase?(Note Information is based on NewBank's first month of operations) NewBank vill purchaseT-bills (Round your response to the nearest whole number) Complete the balance sheet below to show NewBank's purchase. (Round your responses to the nearest whole number) Assets Liabilities Checkable deposits million sl million Required reservesmlin Excess reserves T-bills Loans S millionBank capital S million S millior Bank capte eposis 0te

Explanation / Answer

Assets Liabilities Reuired Reserves               18 million Checkable Deposits            256 million Excess Reserves            158 million Bank Capital            165 million T-Bills            189 million Loans               56 million T Bills Purchased = $189 Millions / $ 4,987 T Bills Purchased = 37,899

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